The Software-Defined Data Center (SDDC) market is expected to grow at a CAGR of 19.24%, reaching a market size of US$351.659 billion in 2030 from US$145.660 billion in 2025.
The market needs software-defined data centers (SDDCs) since it requires a more adaptable data center infrastructure that also increases the need for storage, computing power, and a complex network. SDDC is a data center in which all infrastructure is virtualized and delivered as a service. Due to the growing need for software-defined data centers. Hence, it also provides a solution to support both legacy enterprise applications and new cloud computing services
The market is even being driven by the rapid growth of colocation and cloud data centres across the world due to the increase in usage of cloud computing and advancing technologies which is driving the demand for software-defined data centers.
The software-defined data center market growth is also attributed to the cost reduction factor, as it helps businesses not to purchase hardware or acquire vendor-specific skills to maintain and operate it, and even manage upgrades to physical machines. Increasing security threats that involve loss of critical information can be seen to be affecting the market growth of these data centres. These virtualized data centres help in running applications on the network for creating, provisioning, and deploying network resources in real-time, adding or removing switches, routers, and servers as the need arises.
The software-defined network has a notable market share in the software-defined data centre market. The market growth in this segment is majorly attributed to the increasing need for better connectivity around the world, as connecting enterprise branches, clients, and vendors through a virtualized network will provide businesses with better access to resources and wider reach. The software-defined data centre market is also growing due to the exponential growth of big data in the communication and technology industries.
The software-defined storage also holds a significant market share in software-defined data centres due to the continuous increase in data generation worldwide on account of the increasing digitization of business functions and increasing overall internet penetration. Software-defined storage is providing more virtual and scalable storage space for enterprise-owned data centres, cloud data centres, and colocation data centres, thus supporting their revenue generation strategies. The increase in usage of software-defined networks and storage is due to cost reduction, lower time to service delivery, and better flexibility, scalability, and management of multiple infrastructures at once.
The software-defined data centre market has been segmented into colocation providers, cloud providers, and enterprises. Together, colocation providers and cloud providers hold a significantly large market share. These vendors are showing a continuous increase in the demand for software-defined data centres to reduce their costs and increase their virtual space to provide their clients with more storage space and better networking solutions. The demand for software-defined data centres is also increasing on account of the generation of huge volumes of data every day, which is driving the demand for quicker access to big data, which is provided by software-defined data centres through virtualization and cloud technology, and by using advanced data management solutions that help in monitoring and creating backups of huge datasets. Enterprises are expected to continue holding a significant market share in the software-defined data centre market over the forecast period. The increasing demand for storage space, better networking, and security is making enterprises move towards using software-defined data centres for higher efficiency and cost-effectiveness.
Due to the growing acceptance of software-defined data centers, there is currently no worldwide standard for SDDCs.If a multi-controller SDN architecture lacks a single virtualization standard, then SDN controllers built by different vendors may exhibit inconsistent or even deceptive behavior. An increase in network traffic congestion can occur when there are several controllers in use simultaneously. When converting traditional data centers into software-defined data centers, the absence of standards brings up serious interconnection problems. The use of multi-controller SDN architecture in SDDCs is limited by integration problems and interoperability brought on by a lack of internationally recognized virtualization standards, which is also likely to limit market growth.
The Asia-Pacific region is experiencing the fastest growth in this market due to increased economic expansion and the creation of many startups, fast embracing of smartphones and the internet, as well as the increased need for similar businesses to thrive. The next few years are expected to witness a significant rise in hybrid cloud usage rates within Asia-Pacific due to its cost efficiency, scalability, and security features, with agility being an added advantage. The Asia-Pacific region is experiencing the quickest growth, mainly due to the consistent economic growth, resulting in many startups springing up. Moreover, there has been a rapid adoption of smartphones and the use of the internet in this region. Conversely, the demand for similar businesses has witnessed an increase.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Software Defined Data Center (SDDC) Market Size in 2025 | US$145.660 billion |
| Software Defined Data Center (SDDC) Market Size in 2030 | US$351.659 billion |
| Growth Rate | CAGR of 19.24% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Software Defined Data Center (SDDC) Market |
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| Customization Scope | Free report customization with purchase |